Get in on the wearable computing bubble

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Budget ceiling! Panic, hurry, Greece is imploding. Oh man, the Fed’s gonna stop QE tomorrow, sell everything! Oh no, rates are finally rising and … wait, you mean, there’s no headlines panicking over the sharp rise in Treasury rates? The only thing you’ll find in the headlines about suddenly spiking rates is a debate on whether or not they’re even bad news at all? See: To Cheer or Fear Rising Bond Yields?

With Treasury rates now up 25% from their recent lows and with the big move upward in dividend stocks all year, that trade I was pointing out a year ago of “Buy high quality dividend stocks that yield more than Treasurys” is over. I don’t think the average trader is thinking through just how much of this last 50% of the rally in stocks has been a forced-on risk trade as savers were desperate for yield and buying stocks instead of CDs and Treasurys. It won’t take much money leaving stocks to make stocks go down sharply. While on the other hand, if the Fed’s own Treasury buying isn’t stopping Treasury rates from rising, then there’s probably not much the average Joe/investor isn’t going to do to make Treasurys go up.

So with the short-term outlook for stocks and Treasurys and bonds looking bad, what’s a good investor and trader to focus on? As always, finding the most revolutionary companies and getting ahead of the future trends in tech.

I have written several times about the huge future of wearable computing (see: The most disruptive technology we will ever see – Mini Me computing is the next big thing and it’s huge) that both Apple and Google are positioned to dominate in the same way they dominate smart phones and tablets.

This week at the AllThingsD conference, Tim Cook, Apple’s CEO, finally has formally talked extensively about his belief in wearable computing. There will likely be yet another, probably even more open-than-Android operating system and other big underlying trends in the wearable computing industry that we will definitely be getting in front of over the next few years, in the same way we got in front of Apple
/quotes/zigman/68270/quotes/nls/aaplAAPL and Google’s
/quotes/zigman/93888/quotes/nls/googGOOG smartphone/tablet dominance years ahead of time. I’m very excited about wearable computing and the huge markets and new economies that it will create as it enables people to more easily engage in business and communication and consumption than ever.

There is definitely a downside to enabling so much invasion of privacy in public places (and private places too) that will come with wearable computing, as many people are presently thinking through with Google Glasses. But there’s no stopping the future. And personally, I’d rather have a billion little brothers watching than Big Brother watching us, as Big Brother already has been for years. I trademarked the term “Little Brother Is Watching You” a few years ago, but let it expire while I was on Fox.

Google’s YouTube along with Facebook and Twitter will play prominently in the wearable computing future, as the primary platforms for sharing and consumption. Amazon too.

Which makes Apple, Google, Amazon and Facebook the purest publicly-traded plays on wearable computing for now. You thought the App Revolution Bubble was big and profitable? You ain’t seen nothing yet. Here comes the Wearable Computing Bubble down the pike.

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About The Cody Word

Cody Willard writes the Revolution Investing investment newsletter for MarketWatch and posts the trades from his personal account at TradingWithCody.com He is the founder of WallStreetAll-Stars.com and the principal of CL Willard Capital. Cody serves as an adjunct professor at Seton Hall University and is on the University of New Mexico Alumni Board. He was an anchor on the Fox Business Network, where he was the co-host of the long-time #1-rated show on the network, Fox Business Happy Hour. Cody, a former hedge fund manager, and his stock picks and economic outlooks have been featured on NBC’s The Tonight Show with Jay Leno, ABC’s 20/20, CBS Evening News, CNBC’s SquawkBox, Jon Stewart’s The Daily Show, as well as in the Financial Times, Wall Street Journal, New York Times, and many other outlets.